4-Star Stocks Poised to Pop: Peabody Energy

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, coal producer Peabody Energy (NYS: BTU) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Peabody's business and see what CAPS investors are saying about the stock right now.

Peabody facts

Headquarters (founded)

St. Louis, Mo. (1883)

Market Cap

$6.4 billion

Industry

Coal and consumable fuels

Trailing-12-Month Revenue

$8.3 billion

Management

Chairman/CEO Gregory Boyce
Vice President/CFO Michael Crews

Return on Equity (average, past 3 years)

17.6%

Cash/Debt

$489.2 million/$6.4 billion

Dividend Yield

1.5%

Competitors

Arch Coal (NYS: ACI)
BHP Billiton
(NYS: BHP)
CONSOL Energy
(NYS: CNX)


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 2,104 members who have rated Peabody believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star nonzerosum, succinctly summed up the bull case for our community:

I think coal has bottomed because it trails [natural gas] prices which are off their lows. [Peabody] and [Joy Global (NYS: JOY) ] are nicely undervalued even at today's low coal prices because they produce good earnings and cash flow. Imagine if coal regains price per kJ parity with [natural gas].

If you want market-thumping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Peabody may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article 4-Star Stocks Poised to Pop: Peabody Energy originally appeared on Fool.com.

Brian D. Pacampara has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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